State commission turns up heat on utilities after Sandy

James Nani

Tuesday

Jan 8, 2013 at 2:00 AM

ALBANY — New York's powerful Moreland Act Commission has recommended beefing up the power of the state's utility regulator and increasing fines for poor performance of power companies in the wake of Superstorm Sandy.

ALBANY — New York's powerful Moreland Act Commission has recommended beefing up the power of the state's utility regulator and increasing fines for poor performance of power companies in the wake of Superstorm Sandy.

At a Monday briefing in Albany, Gov. Andrew Cuomo said he believed the state needed to put fangs back into the state Public Service Commission to punish utilities.

"I think you need to truly restructure the relationship and that's not just about Con Edison, that's about all of them," Cuomo said.

The commission was created under the state Moreland Act, giving the governor or a commission broad subpoena powers.

A preliminary report by the Moreland Commission, tasked with reviewing utility storm preparation and response, found the six utilities operating in New York and the Long Island Power Authority operate as "natural monopolies in their own exclusive service areas with no risk of losing all or part of the territory because of toothless government oversight."

At its peak, Sandy caused 2.1 million customer outages throughout the state, with some customers left without power for up to 21 days after the storm struck on Oct. 29.

Among the commision's recommendations: Base penalties on the gross revenue of the company instead of its maximum fine of $100,000 a day and hire 16 more trained staff at the Public Service Commission after "years of reductions."

Cuomo asked to have the recommendations before his State of the State address Wednesday.

The commission also strongly criticized the Long Island Power Authority, saying it was unprepared for Superstorm Sandy, then inept in its response. The commission recommended scrapping LIPA altogether and privatizing the authority. Cuomo, who appoints leaders of the LIPA board, would have to approve privatization.

Assemblyman Kevin Cahill, D-Kingston, who chairs the Assembly Energy Committee, said he agreed with many of the Moreland findings. What was completely lacking from the commission report, said Cahill, was the ability to have the voices of utility users heard.

"Consumer representation in utility matters has been decimated in New York state and we need to revitalize that," Cahill said.

Spokespeople for local utilities generally welcomed the recommendations.

Orange and Rockland spokesman Mike Donovan said the company "looks forward to working with all parties to improve our storm operations. Superstorm Sandy devastated our region, and all of us must participate in the discussions on infrastructure investments and new policies."

NYSEG spokesman Clayton Ellis said the utility would continue to cooperate with the Moreland Commission's ongoing investigation.

Central Hudson Gas and Electric spokesman John Maserjian said the utility felt it had performed well before and after Sandy.

"Half of Central Hudson customers affected by Sandy had power back in one day and 90 percent had it back within three days," said Maserjian.

jnani@th-record.com

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.